NAB CEO Andrew Irvine has written to NAB business customers sharing his optimism for the year ahead.
In the letter, Mr Irvine says the recent decision by the Reserve Bank of Australia to reduce the official cash rate is important on several levels, not only offering relief for homebuyers, but should have a positive impact on confidence, providing clarity that allows businesses to make longer-term decisions.
Mr Irvine says NAB continues to advocate for businesses on challenges they face, and reiterated support services available to customers in need of assistance.
The following is a copy of the letter which will be emailed to NAB business customers.
Hi Customer,
Thank you for being a NAB customer. We truly value your business. As the Australian economy transitions, I wanted to share my thoughts and how we can support you to navigate the opportunities and challenges.
Why I’m optimistic for 2025
The recent decision by the Reserve Bank of Australia to reduce the official cash rate is important on several levels. While much of the focus is on the relief for homebuyers, more broadly it suggests interest rates have peaked. If so, we’re now in a downward cycle on borrowing costs.
Greater clarity after a long period of uncertainty on the direction of interest rates should have a positive impact on confidence. Businesses we speak to say the RBA’s decision will help them make longer-term decisions.
On average homebuyers will have an extra $100 a month in their budgets after NAB and other lenders reduced home loan rates by 0.25%. Not all our customers will spend this extra money. Some tell us they will continue to pay down their loans or increase savings. But in aggregate this will be good for the economy and for businesses.
Economy in transition
Too often we talk about Australia in a singular context and over-emphasise customers in distress. While it’s important that we look after these customers, we need to recognise the locations and people doing well. Parts of Queensland, Western Australia and the Northern Territory are surging. Businesses connected with resources, energy, infrastructure and government projects are seeing increased investment.
South-east Australia, in particular parts of Melbourne and Sydney, are generally finding things tougher. However, I am confident in the long-term prospects of these centres given their importance to our nation’s future.
NAB is here to help
The challenges faced by business are familiar. Wage costs, availability of labour, pressure on margins and red tape are all issues customers say are impacting them. NAB is advocating for you on these matters and we want to work with government and regulators on solutions. Productivity and housing are two areas that I will continue to be vocal about. We need new thinking and a national appetite for practical solutions.
We also acknowledge the impact recent natural disasters have had on our customers and communities. Events such as Cyclone Alfred and the summer bushfires can be devastating and we want you to know we are here for you if you need us.
NAB has 6000 business bankers, specialists and support staff working with businesses across Australia and New Zealand. If there’s anything we can do to support you, please get in touch through your banker or via nab.com.au/contact-us.
All the best.
Andrew Irvine
